Investing in Mozambique

1.           Introduction

The World Bank in its recent “World Tourism & Associated Economic Sustainability” report commented that Mozambique has recently become earmarked as one of the most potentially promising and economically viable tourism and development destinations on the East Coast of Africa.  Ponta D’ Ouro & Ponta Malongane in particular has economically and socially progressed in leaps and bounds toward becoming, other than Sodwana Bay in Northern Kwa-Zulu, the most popular and busiest tourist destination between Durban and Mombasa. With over 400 000 tourists visiting these quaint seaside towns each year, the demand for new accommodation and facilities is immense.

Ponta D’ Ouro offers a host of amenities and facilities for the discerning tourist and recently has experienced a proliferation of residential abode refurbishment and construction.  Municipal power supplies, eight resorts, telecommunication, watersports, luxury guesthouses, banking facilities, night-clubs, restaurants, game fishing and some of the best scuba diving on the east coast ensures unparalleled opportunity for further development and growth.

The areas remarkable diversity and unique combination of traditional African bush, sub-tropical coastline, sweeping coastal plains, savannah, dense forests, majestic inland lakes and pristine beaches, make it one of the richest natural treasure chest in the world.  Coral Palm Development (Pty) Ltd now offers potential buyers the unique and unprecedented opportunity of owning some of the most valuable real estate on this coastline.





2.           Investor Opportunities

Initiatives such as the trilateral Lubombo SDI (Spatial Development Initiative) between South Africa, Mozambique and Swaziland, the Maputo Corridor and the Trans-Frontier Conservation Area (TFCA) linking the Tembe and Ndumo elephant Parks with that of the Maputo Elephant Park have has major success, culminating in the recent announcement of funding for Eco-Tourism in the areas by the heads of State of the three countries at the World Economic Forum Summit this year.

The recent developments in the conservation projects, as well as a new shift in government policy in Mozambique towards land tenure and ownership of land, have now, more than at any time in the past, opened up the way for a bold protocol to transform the southern Mozambique tourism resort areas into a unique and desirable tourist destination for local, South African and overseas guests alike.  In addition these initiatives have created unsurpassed opportunities for potential Investors and Developers.

3.           Tourism Initiatives

The raison d’ etre of the Lubombo SDI is job creation and sustainable employment.  Tourism is seen as the key sector to impel the endeavour, with the South African and Mozambican governments already having committed significant resources to the fulfilment of the process over the past three years. Integral to the South African and regions component of the Lubombo SDI (Spatial Development Initiative) is the GSLWP, which has been accorded World Heritage status.

In terms of the World Heritage Convention Act of 1999 and its regulations, a dedicated authority – the Greater St Lucia Wetland Park Authority – has been established, as a separate legal entity, and mandated to promote and significantly expand tourism development in the GSLWP.  This initiative will not only assist in promoting international tourism to the region but also more importantly, ultimately improve and increase the value of the anticipated projects in the Ponta D’ Ouro area.

4.           Investment Legislation

With an economic reform package in place, Mozambique is open for business.  The policies adopted by the freely elected majority government are for a market economy and for creation of conditions to enable private business to prosper.  A law was introduced to encourage foreign investment (law no 3/93), under this law the Government created the Centre for Investment promotion (Centro de Promocao de Investimento) which will assist all foreign and national investors to obtain all the necessary authorisations for their investments, as well as fiscal and duty incentives.  These changes have created a positive business and investment environment and the process is ongoing with further changes planned in the commercial legislation as well as the creation of a capital market and establishment of a stock exchange.


5.           Investment Protocols

Some of the factors underpinning the outstanding commercial potential for investing in Mozambique include:

·         The backing and support of national and provincial government demonstrated by large-scale commitment of public monies to develop the support infrastructure required to establish the areas a major international tourism destinations (R630-million in northern KwaZulu Natal, $220-million in southern Mozambique and R420-million in the Swaziland eastern corridor)

·         Initiation of development nodes such as NPTFCRA(Nsubane-Pongola Trans-Frontier Conservation and Resource Area), and the LCGTFCRA(Lubombo Conservancy-Goba Trans-Frontier Conservation and Resource Area, which will coincide with the three territory SDI (Spatial Development Initiatives)
·         The recent declaration of the region of Ponta D’ Ouro to Santa Maria as a Marine Reserve with an appointed MPA (Marine Park Authority)

·         The award of the new $ 600 million Ponta Dobela deep water harbour which will dramatically increase Real Estate values and investment opportunities in the immediate area

·         Construction of the R250 million Maputo Corridor linking Johannesburg with Mpumulanga and Mozambique

·         Substantial governmental investment in tourism infrastructure, such as game-stocking, game fencing, key access roads, airport, hospital and services (water, electricity etc)

·         Establishing a new Mozambique border post near Kosi Bay

·         Construction of a new R234 million spine road through the Lubombo tourist area, from Hluhluwe to Maputo

·         The institution of a funded malaria-control programme in Mozambique

·         Creating and marketing a World Heritage route in collaboration with local stakeholders

·         The unique unspoiled and spectacular natural assets – rivers, lakes, bushveld, beaches, estuaries, mountain and plains

·         A year-round sunny and hot climate with a warm water coast

·         A R211-million upgrade of the national N2 road from Richards Bay north to the border

·         Re-stocking of the Maputo Elephant Park located 10kms from Ponta D’ Ouro and;

The massive planned rehabilitation of the town of Ponta D’ Ouro (incl. roads, telecommunication, water supply, electricity, hospital, 4 star hotel and marine centre)